Saxony cuts jobs - draft budget presented

Saxony is cutting jobs for the first time in many years. In the coming year, the draft budget still provides for 96,019 jobs, compared to 96,491 in 2024. "With the double budget, the state government is embarking on a path of staff cuts that we absolutely must continue to follow in the coming years. Otherwise, personnel expenditure will grow beyond our control," said Finance Minister Christian Piwarz (CDU).

Expenditure of around 25 billion euros planned per year

According to the government's draft for the 2025/2026 double budget, expenditure of around 25 billion euros is planned for both years. Piwarz explained that revenue and expenditure had been successfully reconciled. However, this would require painful cuts in many areas. Nevertheless, the draft budget allows for investment in the future of the Free State. Despite a tense financial situation, political priorities such as the supply of teachers were spared cuts.

Investment ratio falls

Due to pay rises for employees and the resulting increase in civil servant salaries, the draft budget envisages rising personnel expenditure from just under 5.8 billion euros (2024) to 6.4 and 6.7 billion euros this year and next year respectively, despite job cuts. The draft budget will reduce the investment ratio from 16.8 percent in 2024 to 12.6 percent in 2026. The draft will now be forwarded to the state parliament. It is expected to be adopted in the summer.